The tycoon will now not be involved in the latest bonus scheme, which could award £180m of shares to staff in 2019

Newcastle United owner Mike Ashley has given up his right to a potential multi-million pound windfall after removing himself from Sports Direct’s latest bonus scheme.

The four-year scheme, which has the potential to grant 25 million shares, worth around £180m, to 3,000 of the sportswear chain’s staff - including Mr Ashley - recently came under fire from investors groups and the Institute of Directors.

But now Sports Direct’s remuneration committee, which had been due to decide on the number of shares available to Mr Ashley under the scheme, has been told after discussions with the tycoon that he did not wish to participate.

“Following recent unhelpful speculation surrounding his potential allocation, (Mike Ashley) is determined to ensure that there is the maximum number of shares available for the eligible employees,” Sports Direct chairman Keith Hellawell said.

Mr Hellawell said Mr Ashley wanted to ensure that the bonus scheme, which recently rewarded some 2,000 staff with shares worth around £68,000, was used to incentivise staff and help the company meet targets.

“Mr Ashley has also said he does not expect any other incentive scheme to be proposed to shareholders over the four years of the current bonus plan,” he added.

Mike Ashley has not received a salary or bonus since Sports Direct floated in 2007, although he netted £929m in the flotation and has since banked hundreds of millions of pounds by selling shares in the business. He still owns 58% of the company.

To achieve the latest payout the firm’s earnings will have to hit £480m at the end of the 2016 financial year and rise to £750m by 2019. In results due this week, Sports Direct - which has around 400 UK stores, operates in 19 European countries and also owns brands including Dunlop, Karrimor and Slazenger - is expected to report earnings of around £327.1m.

Just over 60% of the shareholders eligible to vote backed the current plan at a special meeting at the company’s headquarters earlier this month.

In April, the company pulled a proposal that could have awarded Mr Ashley more than £70m based on targets for this year and 2015. The business initially tried to hand Mr Ashley a bonus in September 2012, but again failed to win enough investor support.

The Local Authority Pension Fund Forum criticised the current scheme, saying that it was inappropriate to establish an incentive plan with a single board member in mind.

Forum chairman Kieran Quinn said: “This arrangement creates a bias in favour of Mr Ashley as well as the impression that he is creating the scheme for himself.”

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